PFE - Codexis to make enzyme used in Pfizer's COVID pill says Q2 revenue expected to be $38M

Codexis ( NASDAQ: CDXS ) on Thursday said it had inked a deal with Pfizer ( PFE ) to make an enzyme used to manufacture nirmatrelvir, which is an active pharmaceutical ingredient in the U.S. drug giant's COVID-19 antiviral pill Paxlovid.

In an separate 8-K filing with the U.S. SEC , CDXS said the supply agreement is for its CDX-616 enzyme and requires the company to establish a sufficient supply inventory of the enzyme to cover estimated orders from PFE over a negotiated time period.

As per the agreement, Pfizer ( PFE ) will pay Codexis ( CDXS ) a retainer fee of $25.9M by July 31.

CDXS said it anticipates recognizing a portion of the retainer fee as revenue in 2022, with the remainder to be recognized as revenue in 2023 and 2024.

In another press release , CDXS said it expects total revenues for Q2 to be about $38M vs. consensus revenue estimates of $40.23M.

CDXS also updated its FY 2022 guidance and said it now expects revenue to be in the range of $135M to $141M vs. consensus revenue estimates of $155.39M.

The company is slated to report its Q2 results after the market closes on Aug. 4.

CDXS stock fell ~14% to $10.39 after hours.

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